subject: 10 Ideas To Raise Money When Facing Foreclosure - Taking Steps To Prevent Foreclosure [print this page] Millions of people who never thought they would need to worry about making their mortgage payments are finding themselves faced with the decision to file for bankruptcy or lose their homes. Family budgets are being scrutinized and everything that is not deemed "necessary" is being removed. The current challenging economic climate is not only affecting homeowners, it is affecting the businesses that are losing revenue when belts are being tightened and disposable income for the average American is at an all time low. However, removing "extras" alone will not be enough for most people. Here are 10 ideas to raise money when facing foreclosure.
Consider applying for a stop foreclosure loan. Despite what you may have heard, there are still funds available. Most people are not turned down based on credit, income or equity until the circumstances are thoroughly reviewed. Foreclosure equity loans are available through traditional as well as online lenders. Loans are approved on a case by case basis. Loan modifications are more common than they were a few years ago, but more difficult to get due to the sheer volume of applications most lenders are receiving. However, this may be your best option if you are looking for ideas to raise money when facing foreclosure.
With this option, it is often possible to refinance the current mortgage amount or extend the term of the loan. A Special Mortgage Forbearance Agreement allows you to postpone the monthly mortgage payment for up 12 months. Many lenders make it difficult for you to do this on your own, so you may need the help of an organization that specializes in helping homeowners with ideas to raise money when facing foreclosure. If you have at least 30% equity in your home, a hard money loan may be appropriate. Qualifications are not based on your credit history or income.
Private loans are similar to hard money loans, but are financed by a private investor, not a financial institution. They often require less than 10% equity. In investor leasebacks, an investor purchases your home and sells it back to you with a new payment. The interest rate is usually around 8% and is amortized over 30 years. This gives you the time needed to rebuild your credit enough that you can refinance the loan in your own name. Cash for Keys, Bankruptcy and Sale are all ideas to raise money when facing foreclosure that may require you to walk away from your house, but are less detrimental to your credit.
by: Nick Adama
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